Home Selling in Hoboken>Question Details

Mike, Home Seller in Union City, NJ

Hi there, I'm currently looking to sell my apartment in Union city and willing to part with 4% commission.

Asked by Mike, Union City, NJ Tue Dec 25, 2007

Similar apartments are going for 390-410k range which would eman approx 16k out of pocket expense. Are there any realtors that will give me full service for 4% commison?

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Sure there are plenty. Be sure to do your research for a strong agent that has good marketing capabilites.
Check with some of the smaller name companies. In essence, you get what you pay for. There are local companies that I am sure are popular in your area that will accomodate you at 4%.

Again, interview a few agents and see what they have sold, where they advertise (this is key), website info, open house details and how many successful sales they have of thier listings.

All commissions are negotiable, remember that.

Good Luck.
1 vote Thank Flag Link Tue Dec 25, 2007
My suggestion is that you pay 6% commission with listing agent 2% and selling agent 4%. Do NOT blindly put half and half of commission split between listing and selling sides. Why? Most, if not all, realtors will look at the commission to give priority to sell your house, and at current market, selling agents do most of the works, and with 4% reward, your listing STAND UP that over 5,000 realtors in the country will try to sell your unit. If, in this world, there is only ONE buyer, then one of that 5,000 realtors will definitely bring to you, and your unit will be sold.

Your listing agent will be very happy since s/he would not only get his or her 2% much easier, and s/he maybe even bring the buyers to you to get that 4% commission.

In the mean time, put a claus in the so-called "standard" contract that you will honor buyer 4% if the buyer came to you directly, and place for sale by owner ads in popular website like craigslist.org and keep posting comparable sold info like in the web reference below, prospective buyers will defintely get educated faster and act quick.

Keep in mind, it would be your listing and YOU working together as a team, every un matched buyers, do NOT hesitate to refer to YOUR LISTING agent. Why? your listing agent can show them your competitors in the community, and chances are they will be a match. Once they have a match, you got one fewer competitor in the community. So, do NOT hesitate to help your competitors sold.

Thru out the process, you would act like a Project Manager, and your listing agent is a Consultant of 6 month term you hired, and you need to guide him or her to do, mostly technical, and monitor MLS for you, and keep in informed should any competitors sold, you want to get the info, and BROADCAST in Craiglist so that many more prospective buyers will be interested in visiting your community.

Also create an Yahoo!Group of your property, and get all who have seen your property added, e.g. your realtor, other realtors who did complimentary analysis for you but did NOT get the listing (they may end up sell your unit for that 4%), neighbors, even competitors, all who came to your open house... just every one who HAS SEEN your unit, and you keep broadcasting the updates of your unit, e.g. next open house, bathroom painted, driveway paved ...etc. When you have 75 members in your group, your unit should have been sold by then.

I did an experiment last year 2006 winter, when I got 50 members in Village Pointe at Edison, I got 8 units sold, and later I got all 3 dozens units sold in the whole community. It works perfectly since there is Computer Theory behind this algorithm.
1 vote Thank Flag Link Thu Dec 27, 2007
The commission is negotiable in the State of New Jersey. However, instead of looking at it as how much less you are "netting", look at it, as: if my agent is making less money selling my home, how motivated is he? If he's motivated because I'm cutting his salary, will he work as hard if I paid him more? Would you work as hard for a job that paid you less, or for a job that paid you better? In today's slow market, where there is alot inventory on the market, and with the mortgage market meltdown is making it harder and harder to find qualified buyers, what sort of advertising dollars are needed to sell your home against the competition? When homes were selling like hot cakes, less commission per sale could be made up with a higher volume of sales. But now, you get what you paid for. An agent that accepts a low commission will not put significant advertising dollars into the listing. It costs money to service a listing. That's why an overpriced listing doesn't sell. Also, the buyer's agent will take a buyer to a listing where they can earn a 3% commission split, rather than a 2% split. Would you work as hard for less money?

My advice: instead of offering a lower, and lower price, anc constant price reductions, simply raise the commission the buyer's agent, and be sure to make the split favorable to the buyer's agent. For example, if I have a 6% commission, I would only keep 2% for myself as the listing agent, and offer the buyer's agent 4%. That gets the house sold and sold fast.
0 votes Thank Flag Link Thu Dec 27, 2007
To address Robert's points, and I would add, Mike, I wouldn't take any of his advice if I were you...
1. The listing agent is going to work their tail off to sell your home. Split the commission evenly..
2. Realtors show their customers whatever homes they ask to see. The don't refuse to take them to homes offering 2%.
3. Robert is not a real estate agent, so he has absolutely no clue how the work of a listing and selling agent is split.
4. The "clause" Robert is suggest you put in a standard contract is there already. It is the Exclusive Agency Listing option and usually is a check off box. You ask for an exclusive agency and you are practically guaranteeing the listing agent will do nothing. In fact, there is no way I will take an exclusive agency and market it, since the seller can bring in their own buyer at any time and all my money and time invested will be LOST. The only time most agent swill take an exclusive agency is when they are from out of the area, think the house won't sell, or whatever reason don't plan on putting anything into it's marketing. Nothing spent, nothing lost.
5. Robert believes he is being generous by telling you to refer any calls YOU get to the listing agent. In reality, most of the calls you get will either be unqualified buyers or will be looking for more home than you have: your agent will indeed sell them the competition if they sell them anything, but do you really want to waste your time with them first? Your agent can qualify them much faster than you can.
6. The rest of his post I can hardly comprehend what he is trying to get across, but it looks like too much for the average FSBO, to me.
0 votes Thank Flag Link Thu Dec 27, 2007
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